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the Web. This has its own userid/password database. We are going to deploy a Squid Proxy that does a userid/password look up of the existing NT SAM, this way users will use the same password for Internet access as they do for normal NT logon. We have Internet Explorer 5 as a standard browser.

My question is: Is it possible to disable the 'save password option' on the IE browser? We do not really want the NT password stored locally (I assume this is how IE stores it). I have asked my desktop guys the question and they do not know of a way using the existing policy editor, is there another way?

Yes there is, as long as none of your users has the ability to edit the registry setting for their own machine. If they can edit the registry, then all bets are off. See this tip below from the Virginia Tech NT User's Group.

"Internet Explorer has the ability to remember the passwords you use to log on to certain Web sites. To disable this feature -- called Password Caching -- open the Registry editor and drill down to the following key:

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